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Tutorial-5
Exersise-6
(a) RLF Company estimates that 2% of net credit sales will become
uncollectible. Sales revenue are $600,000, sales returns and
allowances are $30,000, and the allowance for doubtful accounts has a
$6,000 credit balance.
(b) RLF Company estimates that 10% of accounts receivable will become
uncollectible. Accounts receivable are $100,000 at the end of the year,
and the allowance for doubtful accounts has a $500 debit balance.
Answer